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Shekel Extends Losses, Israel's Budget Deficit Widens

ILS

Spot USD/ILS gains for the second consecutive day as a risk-off tone took hold across FX space. The rate topped out at 3.7118, a new monthly high, and last deals +287 pips at 3.7042. Should bulls manage to force a break above Jul 27/Jun 30 highs of 3.7300/08, they could take aim at Jun 2 high of 3.7551. On the downside, bears keep an eye on Aug 2 low of 3.6258, while the nearest firm support is provided by the 200-DMA at 3.5743.

  • Israel's 12-month rolling budget deficit increased to 1.0% of GDP in July from 0.8% in June, according to the latest data from the Finance Ministry. Globes comments that "this latest figure brings Israel's 2023 budget to the threshold of the annual fiscal deficit target of 1.1% after just seven months. The trend suggests that the fiscal deficit will be significantly higher than the target approved in the budget by the end of the year."
  • Looking ahead, Israel will report July trade balance and consumer confidence on Thursday.

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